In the short-run, a perfectly competitive firm can earn normal profits or above normal profit but it cannot incur losses

Economies of scale are present when:

a) average cost rises as input increases. b) the LRAC curve is horizontal. c) total fixed cost increases. d) average total cost remains constant as input increases. e) the LRAC curve slopes downward.

When using game theory to analyze oligopoly, firms will always have a dominant strategy

a. True b. False